23 November 2011
The Stamp Duties (Amendment) Bill 2011 was presented for the second reading in Parliament on 22 November 2011.
Made up of eight amendments, two amendments give legislative effect to Budget 2011 initiatives, while the remaining six amendments arise from the periodic review of the stamp duty system.
A. Budget 2011
- Stamp duty relief will be made available for a company converting into a Limited Liability Partnership (LLP), subject to conditions. This relief provides more flexibility for companies restructuring to LLPs (Clause 4(a)).
- Most fixed and nominal stamp duties of $2 and $10 on documents executed on or after 19 February 2011 will be removed (Clauses 2, 3, 6, 7(a), 8, 12 and 13).
B. Amendments as result of periodic review of the stamp duties policies and administration
- Stamp duty relief for qualifying mergers and acquisitions (M&As) was announced in Budget 2010. Clauses 5 and 14 propose changes to align conditions for stamp duty relief, such as the qualifying period, more closely to the conditions in the income tax allowance for qualifying M&As.
- Currently, the Minister for Finance can impose conditions to be applied generally for any reduction or remission of stamp duty. Clause 11 provides flexibility for the Minister for Finance to waive the conditions for any relief, remission or exemption of stamp duty for specific cases.
The other provisions in the Bill are to improve tax administration or provide clarifications to the law.
For a copy of the Bill, please click here.
Source: Ministry of Finance